The 4 Things You Need When Trading

It doesn’t matter whether you
want to trade stocks or options, forex or futures.

1. You need money. If you want
to trade, you do need money to trade.

I personally recommend that you
start with $5000 to $10,000. Anything less than that you won’t have much fun,
and anything more isn’t needed.

If you can’t make money on a $5,000 or $10,000
account, why do you think that you’ll make money on a $100,000 account? Start
small and grow big.

2. You need a strategy. You do
need a trading strategy that tells you exactly what to trade, when to enter,
and when to exit. When to exit with a loss. And also, when to exit with a
profit.

3. Based on the trading
strategy, you will need a charting software.

A charting software is your
window to the markets. It basically shows you what the markets are doing right
now and shows it in the form of a chart. It can be a bar chart or a candlestick
chart. It doesn’t really matter.

You’ll need this especially
when you use indicators, which is what I personally like to do. When you use
indicators, you need a charting software that plots the indicators so that you
know exactly when to enter.

If you’ve been following me for
a while you know the 3 indicators that I like to use are RSI, Stochastics, and
MACD.

Instead of using just any
charting software, I use my own, The PowerX Analyzer because it makes it really
easy for me to know exactly what to trade, when to enter, and when to exit.

4. You need a broker.

Eventually, if you want to
place the trades, you need to place them through a broker.

The only financial instrument
that allows you to place trades directly with the exchange are binary options
at NATEX, the North American Derivatives Exchange.

Everything else, whether you
want to trade stocks on the Nasdaq, or you want to trade stocks on the New York
Stock Exchange, or you want to trade futures, you need a broker.

There’s many choices of
brokerages out there that you can use to place the trades. Probably the biggest
brokerage out there is TD Ameritrade. What I personally use is Interactive
Brokers. There’s also Robin Hood and E-Trade.

So in summary, what are the 4
things that you need to trade?

You do need money

You need a trading strategy
that tells you exactly what to trade, when to enter, and when to exit

You need a charting software

You need a broker to place the
trades

Hope this helps. Leave a
comment below and let me know if there’s anything you would like me to talk
about and cover.

Trading Futures, options on futures and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. The lower the day trade margin, the higher the leverage and riskier the trade. Leverage can work for you as well as against you; it magnifies gains as well as losses. Past performance is not necessarily indicative of future results.